HB 2943 Text

H. B. 2943

          (By Delegate Skinner)
          [Introduced March 14, 2013; referred to the
Committee on Energy, Industry and Labor, Economic Development and Small Business then the Judiciary.]

A BILL to amend and reenact §60-4-3 and §60-4-3a of the Code of West Virginia, 1931, as amended; to amend and reenact §60-6-2 of said code; and to amend and reenact §60-7-11 of said code, all relating to providing that the hours of a private club operating on the premises of a distillery that produces less than 50,000 gallons of alcoholic liquor per year or a mini-distillery shall be the same as any other private club; authorizing sales of alcoholic liquor, other than in sealed packages, for consumption on the premises of a distillery that produces less than 50,000 gallons of alcoholic liquor per year or a mini-distillery which also holds a private club license; and exempting alcoholic liquor that was manufactured on the premises of the distillery that produces less than 50,000 gallons of alcoholic liquor per year or a mini-distillery from the requirement that licensees must purchase alcoholic liquors from or through the commissioner or a retail licensee.
Be it enacted by the Legislature of West Virginia:
     That §60-4-3 and §60-4-3a of the Code of West Virginia, 1931, as amended, be amended and reenacted; that §60-6-2 of said code be amended and reenacted; and that §60-7-11 of said code be amended and reenacted, all to read as follows:
ARTICLE 4. LICENSES.
§60-4-3. To whom licensed manufacturer may sell.
     A person who is licensed to manufacture alcoholic liquors in this state may sell liquors in this state only to the West Virginia Alcohol Beverage Control Commissioner and to wholesalers and retailers licensed as provided in this chapter: Provided, That a holder of a winery or a farm winery license may sell wines and a holder of a distillery or a mini-distillery license may sell alcoholic liquors manufactured by it in this state in accordance with the provisions of section two, article six of this chapter. Hours of retail sale by a winery or a farm winery or distillery or a mini-distillery are subject to regulation by the commissioner: Provided, That the hours of a private club operating on the premises of a distillery or mini-distillery shall be the same as any private club licensed under article seven, chapter sixty of this code. A winery, distillery, farm winery or mini-distillery may sell and ship alcoholic liquors outside of the state subject to provisions of this chapter.
§60-4-3a. Distillery and mini-distillery license to manufacture and sell.
     (a) Sales of liquor. -- An operator of a distillery or a mini-distillery may offer liquor for retail sale to customers from the distillery or the mini-distillery for consumption off premises only. Except for free complimentary samples offered pursuant to section one, article six of this chapter, or sales for consumption offered under a valid private club license pursuant to article seven, chapter sixty of this code, customers are prohibited from consuming any liquor on the premises of the distillery or the mini-distillery. Distilleries that produce 50,000 or more gallons of alcoholic liquor per year may not hold a private club license.
     (b) Retail sales. -- Every licensed distillery or mini-distillery shall comply with the provisions of sections nine, eleven, thirteen, sixteen, seventeen, eighteen, nineteen, twenty-two, twenty-three, twenty-four, twenty-five and twenty-six, article three-a of this chapter and the provisions of articles three and four of this chapter applicable to liquor retailers and distillers.
     (c) Payment of taxes and fees. -- The distillery or mini-distillery shall pay all taxes and fees required of licensed retailers and meet applicable licensing provisions as required by this chapter and by rule of the commissioner.
     (d) Payments to market zone retailers. -- Each distillery or mini-distillery shall submit to the commissioner ten percent of the gross sales price or each retail liquor sale for the value of all sales at the distillery or the mini-distillery each month. This collection shall be distributed by the commissioner, at least quarterly, to each market zone retailer located in the distillery or mini-distillery's market zone, proportionate to each market zone retailer's annual gross prior years pretax value sales.
     (e) Limitations on licensees. -- No distillery or mini-distillery may sell more than three thousand gallons of product at the distillery or mini-distillery location the initial two years of licensure. The distillery or mini-distillery may increase sales at the distillery or mini-distillery location by two thousand gallons following the initial twenty-four month period of licensure and may increase sales at the distillery or mini-distillery location each subsequent twenty-four month period by two thousand gallons, not to exceed ten thousand gallons a year of total sales at the distillery or mini-distillery location. No licensed mini-distillery may produce more than twenty thousand gallons per calendar year at the mini-distillery location. No more than one distillery or mini-distillery license may be issued to a single person or entity and no person may hold both a distillery and a mini-distillery license.
ARTICLE 6. MISCELLANEOUS PROVISIONS.
§60-6-2. When lawful to manufacture and sell wine and cider.
     The provisions of this chapter may not prevent:
     (1) A person from manufacturing wine at his or her residence for consumption at his or her residence as permitted by section one of this article;
     (2) A person from manufacturing and selling unfermented cider;
     (3) A person from manufacturing and selling cider made from apples produced by him or her within this state to persons holding distillery licenses, if the manufacture and sale is under the supervision and regulation of the commissioner;
     (4) A person from manufacturing and selling wine made from fruit produced by him or her within this state to persons holding winery licenses, if the manufacture and sale is under the supervision and regulation of the commissioner;
     (5) The holder of a winery or a farm winery license from selling wine for off-premises consumption sold at retail at the winery or the farm winery, as provided in section four, article three-b of this chapter, or for any other person who is licensed under this chapter to sell wine as a wine supplier or distributor; and
     (6) The holder of a distillery or a mini-distillery license from selling alcoholic liquor for off-premises consumption sold at retail at the distillery or the mini-distillery, as provided in section four, article three-a of this chapter; and
_____(7) The holder of a distillery or mini-distillery license from selling alcoholic liquor, other than in sealed packages, for consumption on the distillery or the mini-distillery premises, if the holder of the distillery or mini-distillery license produces less than 50,000 gallons of alcoholic liquor per year and also holds a valid private club license for the premises under article seven, chapter sixty of this code.
ARTICLE 7. LICENSES TO PRIVATE CLUBS.
§60-7-11. Licensee must purchase alcoholic liquors from or   through commissioner or retail licensee; exceptions.
     (a) (1) All licensees shall purchase all alcoholic liquors sold by them from the West Virginia Alcohol Beverage Control Commissioner at prices established by the commissioner for sales of the alcoholic liquors to the public generally or from any retail licensee licensed under the provisions of article three-a of this chapter, except that the licensees may purchase those wines permitted to be sold at retail pursuant to article eight of this chapter from those distributors licensed pursuant to said article at the same prices the distributors sell the wines to retailers licensed pursuant to said article, and distilleries or mini-distilleries licensed under article four, chapter sixty of this code and under this article may sell, if otherwise authorzed, alcoholic liquor, other than in sealed packages, for consumption on the distillery or the mini-distillery premises, if the alcoholic liquor was manufactured on those premises.
     (2) A licensee may by contract approved by the commissioner receive deliveries of alcoholic liquor from a retail liquor store, and the provisions of sections twelve and thirteen, article six of this chapter shall not apply to the transportation of that alcoholic liquor.
     (b) In all reports filed under section sixteen, article fifteen, chapter eleven of this code, retail licensees licensed under the provisions of article three-a of this chapter shall separately identify the amount of sales tax on sales of liquor to licensees in the manner required by the Tax Commissioner.
     (c) Notwithstanding the provisions of section thirty, article fifteen, chapter eleven of this code to the contrary, the amount of the sales taxes collected by the Tax Commissioner shall be deposited in a revolving fund account in the State Treasurer's office, designated the "Drunk Driving Prevention Fund", and administered by the commission on drunk driving prevention, subject to appropriations by the Legislature.

     NOTE: The purpose of this bill is to allow the holder of a distillery or mini-distillery license who produces 50,000 gallons or less of alcoholic liquor to serve alcohol for consumption on the premises of the distillery or mini-distillery, during the hours that a private club is permitted to serve alcohol for consumption, if the holder of the distillery or mini-distillery license also holds a a valid private club license for the premises, and to exempt such distilleries or mini-distilleries from the requirement to purchase alcoholic liquors from or through the commissioner or a retail licensee.


     Strike-throughs indicate language that would be stricken from the present law, and underscoring indicates new language that would be added.

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